Colorado May 2019
Colorado Opens Cannabis Industry to Outside Investors
Colorado is no longer prohibiting publicly traded cannabis. Instead, the state is opening up the industry to investors. The change is expected to bring in new cannabis products from outside of the state. The change could also cause larger chains to buy up smaller local Colorado businesses. This could lead to a decrease in prices on cannabis products in the state if big companies bring increased efficiency and capital.
Publicly traded cannabis companies have previously faced challenges in obtaining marijuana licenses. Legislators in support of the bill argue that voters are in support of allowing these businesses to receive funding from legitimate investors and banks. Legislators in opposition of the change argue that this will create an industry similar to that of big tobacco. Colorado’s Marijuana Enforcement Division plans to hire new employees in anticipation of the increase in cannabis applications due to these changes.